Washington, 12 December 1996 (RFE/RL) - The World Bank says a $300 million loan for Ukraine's coal industry has been approved.

In a statement, the Bank says the funds will be used for severance pay for miners who lose their jobs while Ukraine reforms its coal industry. The money will also help Ukraine preserve the healthy portion of the coal energy sector and reduce the need for government subsidies to coal mining.

Ukraine has just begun a ten-year project to reform its coal industry with the goal of promoting economic growth.